Naples, Fla. - Home sales increased 4 percent in 2017 and the median closed price increased 3 percent, according to the Year End 2017 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). The report also showed heightened activity in the high-end market, with closed sales of homes in the $2 million and above price category skyrocketing 20 percent in 2017.

"Real estate sales are based on many other economic factors," said T. Bringardner, Jr,. "In 2017, we saw above average employment rates, low inflation, record stock market activity, and increased consumer confidence. Looking into 2018, there are additional reasons for buyers to be optimistic including new tax cuts on the horizon and continued growth of their investment portfolios."

A. Vellano, agrees with Bringardner and also points to the unusually frigid weather in northern states recently, which he says will encourage more people to head south and buy homes. "Now is a great time to diversify and invest in property because there's still plenty of inventory and prices have remained stable."

This may not always be the case as indicated by C. Carroll, SRA of Carroll & Carroll Appraisers and Consultants LLC, who advises real estate agents to start watching closely for pockets that may soon show an increase in value. "Overall we had a solid year, but there are hints that change is coming with opportunities for increasing values in market sectors with tightening inventories."

According to Vellano, pending sales during the 3rd Quarter increased 5 percent (12-months ending August 2017), while pending sales at the end of the 4th Quarter increased 2 percent (12-months ending December 31, 2017). "We can only imagine how much more activity the statistics would reflect if the market had not been shut down for nearly five weeks because of a major hurricane in 2017."

The year-end report showed a 4 percent increase in closed sales to 8,815 in 2017 compared to 8,510 in 2016. Many brokers, including B. Huskey, think, "4 percent growth is great considering we had a hurricane and we lost over a month of real estate activity."

"Between December of 2015 and December of 2016, overall market inventory increased 54 percent; between December of 2016 and December of 2017 overall inventory has decreased 11 percent. The single family and condominium markets are well positioned with about 7.5 months of supply in each," said Carroll.

"Other areas in Florida, like Tampa Bay, have less than 2 months worth of inventory," said Vellano.

Properties priced below $300,000 experienced the fewest days on market in 2017. Some broker analysts reported that they saw many of these properties go from list to close in less than 10 days. Inventory continued to struggle in the low end of the market making options difficult for buyers looking for single-family homes in this price range. In fact, 1,265 of the 1,554 available properties in the $300,000 and below price category were condominiums.

"The shining star in 2017 was condominiums in the $1 to $2 million price category," said B.Fioretti. "This category had a 28 percent increase in pending sales and a 14 percent increase in closed sales."

The NABOR® Year End 2017 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® Year End 2017 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:

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2016

2017

CHANGE

Total homes under contract (pending sales) (year/year)

8,903

9,121

2%

Total closed sales (year/year)

8,510

8,815

4%

Median closed price ((year/year)

$320,000

$330,000

3%

Median closed price >$300K (year/year)

$520,000

$514,000

-1%

Total active listings (inventory)

5,946

5,491

-8%

Average days on market

89

104

17%

Single-family closed sales (year/year)

4,268

4,347

2%

Single-family median closed price (year/year)

$400,000

$418,000

4%

Single-family inventory

3,015

2,685

-11%

Condominium closed sales (year/year)

4,242

4,468

5%

Condominium median closed price (year/year)

$253,000

$263,000

4%

Condominium inventory

2,931

2,806

-4%

Geographically, condominiums in North Naples were the biggest sellers in 2017. Closed sales in this region increased 17 percent, while pending sales increased 15 percent.

How homes are purchased continued to shift in 2017 with an increase in conventional sales (properties with a mortgage). According to M. Hughes, "Only 54 percent of home sales in Naples were cash buys in 2017 compared to 69 percent in 2013. Many factors play into this trend including the fact that we have more end users and fewer investors. Also, a buyer's ability to lock in a low interest rate allows them to continue to enjoy the high performing stock market, which had a 25 percent increase in 2017."

When you are ready to put your home on the market, contact Jeremy O'Guinn for the experience, negotiating skills, and local knowledge you need to ensure your experience is a success.

Naples, Fla.- The Naples area housing market maintained positive traction during the Third Quarter of 2017 despite enduring a hurricane that impeded activity for three weeks in September. According to the September 2017 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which track home listings and sales within Collier County (excluding Marco Island), there were 398 closed sales during the month of September, a 30 percent decrease compared to September 2016.

September proved challenging for the real estate market as homeowners and agents were forced to wait while public and utility services rebuilt or repaired infrastructure damaged by the hurricane. This was reflected in statistics released for September, which affected total outcomes for the Third Quarter of 2017. However, year-to-date numbers tell a different story as activity in pending, closed and median price categories were up year over year at the end of the quarter!

"To withstand a hurricane and still outperform last year's activity is a clear sign of market resilience," said B. Huskey. Broker analysts who reviewed both reports agreed that our county's hurricane building code standards and quality craftsmanship by local builders helped to greatly reduce the amount of major structural damage in the area.

"The hurricane hit us in the right month," said M. Hughes, VP for Downing-Frye Realty, Inc., who went on to explain that September is typically when the housing market takes a breath before it begins to intensify again. Yet despite a direct hit by a major hurricane, overall closed sales for the third quarter increased 3 percent (year over year). Not surprisingly, the storm's short-term impact on the housing market in September only tempered sales slightly in the third quarter by 5 percent (quarter over quarter), which translated to just 86 fewer closed sales than in the third quarter of 2016.

Hughes added that activity in July and August outperformed the same months last year. If the hurricane had not hit the area in September, the third quarter of 2017 would have shown much more impressive activity.

"A 55 percent decrease in pending sales for September is equivalent to three weeks of inactivity," said C. Amar. "These sales didn't disappear, they are just delayed.The hurricane's force slowed inventory in September, which resulted in a third quarter decrease of 9 percent. J. Jones, said this was most likely a result of homeowners either delaying to list because they evacuated or removing a listing because they needed time to clean up and make minor repairs to properties following the storm.

"The hurricane created big concerns and delays from banks too," said Jones. "Most lenders are requiring re-inspections and re-appraisals of properties after the hurricane."One element the hurricane failed to harm was the continued growth in property value for Naples. Overall median closed prices in the third quarter of 2017 increased 3 percent to $320,000 compared to $312,000 in the third quarter of 2016.

"The integrity of our real estate market has been renewed now that it survived a direct hit from a major storm like Hurricane Irma," said L. Melo, adding, "Even homes built over 50 years ago withstood damage. Our survival actually strengthened buyer confidence."

The NABOR® Third Quarter 2017 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® Third Quarter 2017 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:

CATEGORIES

3Q 2016

3Q 2017

CHANGE

Total homes under contract (pending sales) (quarter/quarter)

1,952

1,675

-14%

Total homes under contract (pending sales) (year/year)

9,045

9,146

1%

Total closed sales (quarter/quarter)

1,889

1,803

-5%

Total closed sales (year/year)

8,627

8,885

3%

Median closed price (quarter/quarter)

$312,000

$320,000

3%

Median closed price (year/year)

$318,000

$329,000

3%

Median closed price >$300K (quarter/quarter)

$485,000

$498,000

3%

Median closed price >$300K (year/year)

$525,000

$512,000

-2%

Total active listings (inventory)

5,044

4,608

-9%

Average days on market

86

99

15%

Single-family closed sales (quarter/quarter)

1,001

927

-7%

Single-family median closed price (quarter/quarter)

$382,000

$418,000

9%

Single-family inventory

2,669

2,314

-13%

Condominium closed sales (quarter/quarter)

888

876

-1%

Condominium median closed price (quarter/quarter)

$241,000

$248,000

3%

Condominium inventory

2,375

2,294

-3%

"Fortunately, media in most of the core areas where our buyers come from didn't overhype the storm, which helped obscure fears," said C. Carroll, a real estate appraiser. "This is going to be a very good history lesson for us because the hurricane hit during a time of stable market activity. By January though, I think our brush with Irma will be forgotten."Carroll added that sales of existing homes are poised to increase in the coming months too because much of the labor force stepped away from new construction to work for companies that provide a variety of property maintenance, including tree removal and lawn debris cleanup. W Kunkel, added that material costs for new construction may increase too as there will be shortages across the country due to the hurricanes and fires. Carroll responded that delays in new home construction might spur increases in existing home values, especially if inventory does not keep up with the pace of sales.

The NABOR® September 2017 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® September 2017 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:

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Sept 2016

Sept 2017

CHANGE

Total homes under contract (pending sales)

661

299

-55%

Total closed sales

566

398

-30%

Median closed price (month/month)

$318,000

$310,000

-3%

Median closed price >$300K (month/month)

$452,000

$492,000

9%

Total active listings (inventory)

5,044

4,608

-9%

Average days on market

92

96

4%

Single-family closed sales

301

173

-43%

Single-family median closed price (month/month)

$378,000

$448,000

19%

Single-family inventory

2,669

2,314

-13%

Condominium closed sales

265

225

-15%

Condominium median closed price (month/month)

$245,000

$238,000

-3%

Condominium inventory

2,375

2,294

-3%

Compared to other tropical second-home destinations like Puerto Rico, the Southwest Florida housing market fared quite well after it faced a hurricane. Broker analysts including Hughes and Kunkel believe our area may see an uptick in sales from buyers who had their eyes set on an island home in the Caribbean.

When you are ready to put your home on the market, contact Jeremy O'Guinn for the experience, negotiating skills, and local knowledge you need to ensure your experience is a success.

Naples, Fla. - Record-breaking rain fall in June did not dampen buyer interest in the Naples housing market as evidenced in the Second Quarter and June 2017 Market Reports released by the Naples Area Board of REALTORS® (NABOR®), which track home listings and sales within Collier County (excluding Marco Island). The 2Q report showed strong and steady sales activity leading into summer with a 7 percent increase in overall closed sales to 2,880 closed sales in 2Q 2017 from 2,704 closed sales in 2Q 2016, and a 9 percent increase in overall closed sales for the month of June to 907 closed sales from 832 closed sales in June 2016.

There were many remarkable areas of activity in the 2Q Market Report. For example, condominiums in the $2 million and above price category saw an 86 percent increase in closed sales and a 38 percent decrease in median closed price in 2Q 2017 from 2Q 2016. Similarly, pending sales (homes under contract) in the North Naples market increased 20 percent during 2Q 2017 from 2Q 2016, and was the only geographic area that reported a decrease in median closed price (-1 percent).

As reflected in the 2Q Market Report, pending sales of condominiums in North Naples increased 30 percent to 428 condominiums in 2Q 2017 from 329 condominiums in 2Q 2016. Closed sales of condominiums in North Naples increased 29 percent to 463 condominiums in 2Q 2017 from 358 condominiums in 2Q 2016. Condominium sales moving into summer look very good for North Naples too as June's Market Report showed a 30 percent increase in pending sales.

Overall inventory during the 2Q of 2017 rose a respectable 4 percent to 5,189 homes in 2Q 2017 from 4,983 homes in 2Q 2016. According to B.Coffey of Amerivest Realty Naples, inventory during the 2Q was "getting eaten up by sales." This is very evident in the Report for homes in the $2 million and above price category, which only saw a 1 percent increase in inventory, yet a 43 percent increase in closed sales.

Despite a 12 percent increase in inventory for the $300,000 and below price category, there was a 4 percent decline in overall closed sales in this low-end price category. Interestingly, while inventory for condominiums in the $300,000 and below price category saw the highest increase (17 percent) in the 2Q of 2017, the number of closed sales for condominiums in this category did not change quarter over quarter.

"Buyers struggling to find homes under $300,000 in the single family market are turning to condominiums or coach homes as an alternative," said S. Barker of Equity Realty. "Even so, as it stands today, there is only 2.4 months worth of inventory available in the under $300,000 single-family home market, and 4.2 months worth of inventory available in the under $300,000 condominium market." In response, many broker analysts remarked that slack sales in the low end of the market might be due to the imminent burden of additional costs beyond the sale price such as high condominium association and/or club membership fees.

The NABOR® Second Quarter 2017 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® 2Q 2017 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:

CATEGORIES

2Q 2016

2Q 2017

CHANGE

Total homes under contract (pending sales)

2,541

2,770

9%

Total closed sales

2,704

2,880

7%

Median closed price

$325,000

$340,000

5%

Median closed price >$300K

$540,000

$535,000

-1%

Total active listings (inventory)

4,983

5,189

4%

Average days on market

76

97

28%

Single-family closed sales

1,263

1,349

7%

Single-family median closed price

$421,000

$418,000

-1%

Single-family inventory

2,674

2,654

-1%

Condominium closed sales

1,399

1,531

9%

Condominium median closed price

$259,000

$282,000

9%

Condominium inventory

2,309

2,535

10%

Closed sales in the $2 million and above price category are poised to remain strong through the summer as this category experienced a 30 percent increase in pending sales during the 2Q of 2017. One explanation for the burst in closed sales activity for the $2 million and above condominium market was given by Amar, "It appears sellers in the high end of the market are coming around to the idea that a realistic price will sell a property faster. The 38 percent reduction in median closed price for this category during the second quarter shows we are not only seeing more negotiations, but also that sellers are more willing to accept real market offers."

Broker analysts reviewing the June 2017 Market Report acknowledged that the first two weeks of June started out a little slow, but the month ended strong with 907 closed sales, up 9 percent from 832 in June 2016. Sales of condominiums on the Naples Beach took center stage in June with a 50 percent increase over June 2016. June's pending sales activity may set the tempo for a promising summer, as pending sales increased 16 percent in June 2017 from June 2016.

The NABOR® June 2017 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® June 2017 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:

CATEGORIES

JUNE 2016

JUNE 2017

CHANGE

Total homes under contract (pending sales)

720

837

16%

Total closed sales

832

907

9%

Median closed price

$315,000

$325,000

3%

Median closed price >$300K

$521,000

$499,000

-4%

Total active listings (inventory)

4,983

5,189

4%

Average days on market

82

97

18%

Single-family closed sales

421

434

5%

Single-family median closed price

$400,000

$404,000

1%

Single-family inventory

2,674

2,654

-1%

Condominium closed sales

420

473

13%

Condominium median closed price

$243,000

$263,000

8%

Condominium inventory

2,309

2,535

10%

At the end of June 2017, the Naples market contained 7.86 months of inventory, which is considered to be normal, indicating that the June market is neither a sellers' nor a buyers' market. Inventory has not been this robust for the month of June since 2011.

Mike Hughes, General Manager for Downing-Frye Realty, Inc., remarked that the Days on Market increase of 18 percent could be due to overpriced listings.

Naples, Fla. - Overall closed sales of homes in May shined brighter than any other month previously reported in 2017, with an impressive 23 percent increase to 1,027 closed sales in May 2017 from 838 closed sales in May 2016. Likewise, overall pending sales (homes under contract) also outperformed activity reported in the last four months. Leading broker analysts who reviewed the May 2017 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), are quite confident that real estate agents will be very busy this summer.

"If May's momentum continues, this year will turn out better than last year," said Mike Hughes, Vice President for Downing-Frye Realty, Inc. "Home sales during the summer months have become stronger over the past few years. We are no longer seeing a huge disparity in activity between winter and summer like we once did."

One familiar obstacle summer buyers will face again this year is a reduction in available inventory. Whereas the market saw a 26 percent increase in inventory in January 2017 to 6,393 homes from 5,091 in January 2016, the May report showed only a 4 percent increase to 5,404 homes in May 2017 from 5,207 homes in May 2016. Inventory increases are leveling off. Many broker analysts who track activity on a daily basis report that they have witnessed upwards of 900 listings disappear from the Southwest Florida MLS since May 1st.

"This type of behavior is short sighted," said Hughes. "Those who let a listing expire at the end of our winter season are missing a huge opportunity to sell their property during the summer months." Hughes added that our area attracts a variety of buyers during the summer such as international travelers, families from Northern states, and those relocating from other parts of Florida.

Comparatively, the overall median closed price decreased 8 percent in January, while the May report showed an increase of 5 percent to $355,000 in May 2017 from $338,000 in May 2016. Incidentally, January's median closed price was $314,000. If the logic behind removing a listing at the end of season is based on old beliefs that a property will obtain a higher sale price during the winter months, then sellers need to examine the May statistics more closely. According to NABOR reports, there were 424 more closed sales during May than January.

"Buyers during the summer are more serious," said Wes Kunkle, President and Managing Broker at Kunkle International Realty. "In season, we get a lot of traffic, but it's mostly lookers. In the summer, people are ready to buy. They ask real buyer questions, and most often have financing in place."

As noted by Coco Amar, a managing broker at John R. Wood Properties, activity in the $2 million and above price category has really picked up strength this year. As reflected in the report, overall pending sales in the $2 million and above price category increased 52 percent in May. There were also 78 closed sales of homes in this price category in May 2017, up from 36 closed sales in May 2016. And while the overall median closed price for homes above $300,000 increased 8 percent to $590,000 in May 2017 from $547,000 in May 2016, the overall median closed price for this top reported price category decreased 8 percent to $2,950,000 in May 2017 from $3,220,000 in May 2016.

The May report also showed overall inventory increased 4 percent to 5,404 homes in May 2017 from 5,207 homes in May 2016. Homes in the $300,000 and below price category had the highest inventory increase of all other price categories, reporting a 12 percent increase to 1,551 properties in May 2017 from 1,391 properties in May 2016. While still an increase over last year, the rate of the market's overall inventory increase is tempering. In fact, brokers are concerned that housing options in some geographic areas, such as in the Central Naples single family market, may start to pinch sales as this area experienced a 50 percent increase in single-family closed sales during May, but had only an 8 percent decrease in inventory.

The NABOR® May 2017 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® May 2017 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:

CATEGORIES

May 2016

May 2017

CHANGE

Total homes under contract (pending sales)

921

1,027

12%

Total closed sales

838

1,027

23%

Median closed price

$338,000

$355,000

5%

Median closed price >$300K

$547,000

$590,000

8%

Total active listings (inventory)

5,207

5,404

4%

Average days on market

73

98

34%

Single-family closed sales

396

485

22%

Single-family median closed price

$432,000

$435,000

1%

Single-family inventory

2,744

2,734

0%

Condominium closed sales

442

542

23%

Condominium median closed price

$276,000

$289,000

5%

Condominium inventory

2,463

2,670

8%

According to Kathy Zorn, broker/owner of Better Homes and Gardens Real Estate Pristine, "Buyers who are looking for a condominium in the Naples Beach or North Naples area this summer may encounter some challenges as these areas are running low on inventory." Zorn pointed out that in North Naples there was a 47 percent increase in closed sales of condominiums during May, a 26 percent increase in pending sales of condominiums during May, and only a 9 percent increase in inventory. The situation is even more alarming on the beach, as both pending and closed sales of condominiums increased by double digits, but its inventory rose only 1 percent in May.

If you currently have a home for sale in the Naples market, brokers recommend against terminating the listing during the summer. In fact, there were 875 closed sales in June 2015 and 832 closed sales in June 2016, both higher than the number of closed sales in January (603) and February (613) of 2017.

As a highly desirable second-home location that rarely falls below 70 degrees, Naples will always increase in population during the winter months and then decrease during the summer. But according to county growth reports, the permanent residential population in Naples is also growing steadily. When asked, several brokers say that a large majority of the next season's part-time residents, along with a host of new permanent transplants, prefer to do their home buying during the summer.

Naples, Fla. - Inventory decreased for the second consecutive month and prices continued to remain stable in April, setting into motion a burst in end-of-season sales for homes in the market's sweet spot - the $300,000 to $500,000 price category. Activity in that price category for both single-family and condominium homes in the resale market continued to outpace all other price categories during the month of April according to the April 2017 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). And while overall closed sales for the month decreased 5 percent, closed sales for homes in the sweet spot saw a 14 percent increase.

Phil Wood, of John R. Wood, pointed out that the April report showed a 41 percent increase in pending sales for homes in the $2 million and above price category. "There were 10 sales over $5 million in April," said Wood. "This was a good sign we had a very strong season. I think April's activity sets us up for a good summer."

Overall inventory in April increased 8 percent to 5,920 homes in April 2017 from 5,480 homes in April 2016. Most notable was a remarkable 35 percent increase in the $2 million and above condominium inventory for April. However, April's inventory decreased by 470 homes from March's level, which was 6,390 homes.

The group of brokers reviewing the April Market Report added that homes that are unrealistically priced influenced April's average days on market, which showed an increase of 35 percent to 97 days in April 2017 from 72 days in April 2016.

"There appears to be a number of sellers who, when pricing their homes, refuse to take into account the added competition from the new construction market," said Jeff Jones of Coldwell Banker®. Several other brokers collectively surmised that, in many cases, the selling price is typically 8 to 10 percent below the original asking price. Dominic Pallini, NABOR® President, said, "an influx of new homes onto the market creates additional competition that many sellers don't take into consideration when pricing their homes to sell."

In response, Jones said, "Prices overall have remained relatively flat over the last year. Only the homes in the $300,000 and below price category increased in median closed price in the 12-months ending April 2017 from $207,000 to $219,000. There were actually minor decreases in all other price categories above $300,000."

The last frontier of growth is eastern Collier County where buyers seeking single-family homes have more affordable options. This area, which includes 34114, 34117, 34120 and 34137, saw a 17 percent increase in closed sales to 122 single-family home closed sales in April 2017 from 104 single-family home closed sales in April 2016.

The NABOR® April 2017 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® April 2017 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:

CATEGORIES

April 2016

April 2017

CHANGE

Total homes under contract (pending sales)

1,084

1,075

-1%

Total closed sales

947

902

-5%

Median closed price

$325,000

$355,000

9%

Median closed price >$300K

$559,000

$525,000

-6%

Total active listings (inventory)

5,480

5,920

8%

Average days on market

72

97

35%

Single-family closed sales

429

404

-6%

Single-family median closed price

$434,000

$419,000

-3%

Single-family inventory

2,877

2,986

4%

Condominium closed sales

512

498

-3%

Condominium median closed price

$262,000

$296,000

13%

Condominium inventory

2,597

2,934

13%

Several brokers commented that financing has become more complex in the last year and may be one reason the days on market have increased. For the 902 homes that closed in April 2017, the majority (65.3 percent) were cash sales and only 34.7 percent were conventional (financed) sales, a statistic that signifies the seasonal wealth factor.

NABOR® Market Report Posts Solid 1st Quarter

It was a busy season for REALTORS® working in Naples as evidenced in the First Quarter 2017 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). As predicted by broker analysts at the beginning of the year, once sellers began to heed the advice of their agents and reset to reasonable list prices, buyers would react in stride with more solid offers. The statistics reflected this prognosis precisely, and resulted in an increase in overall pending and closed sales, making the first quarter of 2017 as solid as expected.

Noted by Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., "The first quarter was a bit of a bumpy ride but the trend line for sales moved upward throughout the quarter with March coming in as a pretty strong month for sales activity. Overall, we ended the first quarter better than last year and I think the local brokers are cautiously optimistic that we might have a decent summer for sales."

Quite a few broker analysts who reviewed the report agreed with Hughes and said the word on the street is that many buyers who didn't make a purchase during the first quarter have plans to return to the area during the summer as they anticipate home prices may decrease.

Quarter over quarter, the report showed overall median closed prices increased only 2 percent, driven by a narrow 3 percent increase in the $300,000 and below price category. Yet all other price categories tracked by NABOR® showed decreases or no change at all. One exception was single family homes in the $300,000 to $500,000 price category, which jumped 14 percent in median closed price to $387,000 in the 1st quarter of 2017 from $339,000 in the 1st quarter of 2016.

Collectively, broker analysts agreed that activity in the condominium market during the first quarter of 2017 was impressive. In fact, condominium inventory increased 19 percent, while the single-family home inventory saw an 8 percent increase. The report also showed five times the number of condominiums under $300,000 were available in the first quarter of 2017 than single-family homes in the same price category.

"Inventory is up and prices have come down," said Budge Huskey, President of Premier Sotheby's International Realty. "This is an indication that some fundamental economic principles are taking effect in the Naples housing market."

But according to Cindy Carroll, SRA, with the real estate appraisal and consultancy firm Carroll and Carroll, Inc., monthly inventory levels have increased through March, but at a progressively lower rate each month of the quarter. For example, Carroll said, "In a year to year comparison, single family inventory was up 24 percent in December, 19 percent in January 2017, 9 percent in February, and 8 percent in March. The same trend is mirrored in the condominium market. In the long view, overall inventory increased 35 percent between March 2015 and March 2016, and 23 percent between March 2016 and March 2017."

However, Bill Coffey, Broker Manager of Amerivest Realty Naples, was quick to point out that a tempering of inventory levels does not mean fewer options for buyers in the coming months. "The condominium market was hot in the first quarter. Both inventory and closed sales increased 19 percent. And overall sales only lagged last quarter because properties were not priced properly, but now we are seeing price adjustments and the statistics are reflecting the correction. We currently have 8.89 months worth of inventory. In February we had over 9 months. This progressive reduction in inventory Cindy is talking about will not curb market activity greatly."

The NABOR® First Quarter 2017 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® First Quarter 2017 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:

CATEGORIES

1Q 2016

1Q 2017

CHANGE

Total homes under contract (pending sales)

2,786

3,097

11%

Total closed sales

1,929

2,205

14%

Median closed price

$325,000

$330,000

2%

Median closed price >$300K

$545,000

$510,000

-6%

Total active listings (inventory)

5,651

6,389

13%

Average days on market

77

95

23%

Single-family closed sales

982

1,059

8%

Single-family median closed price

$415,000

$410,000

-1%

Single-family inventory

2,996

3,236

8%

Condominium closed sales

967

1,146

19%

Condominium median closed price

$262,000

$270,000

3%

Condominium inventory

2,655

3,154

19%

The Market Report also indicated a trend in how buyers are purchasing homes in Southwest Florida. "In March 2014, cash sales encompassed 74 percent of all sales for the month. In March 2015 it was 73 percent, then 67 percent for March 2016, and finally, in March 2017 cash sales accounted for 64 percent of all sales made in the month," said Hughes. "In the past few years cash sales have been decreasing and more buyers are financing home purchases."

Geographically, the market had some hot areas of action during the first quarter of 2017. Of note was Central Naples (34104, 34105, 34116), which saw a 74 percent increase in single-family home inventory to 634 single-family homes in the 1st quarter of 2017 from 364 single-family homes in the 1st quarter of 2016. And the median closed prices for single-family homes in South Naples (34112, 34113) increased 22 percent in the 1st quarter of 2017 to $386,000 from $317,000 in the 1st quarter of 2016.

Overall inventory rose yet prices remained stable in February according to broker analysts who reviewed the February 2017 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island) using the Southwest Florida MLS. Overall pending sales (homes under contract) and overall closed sales also increased in February keeping REALTORS® out in the field and busy with showings and closings.

"Compared to this time last year when we were challenged to find properties for customers, the February report showed inventory is up by nearly 1,000 new listings, giving us almost nine months of inventory to show eager buyers," said Dominic Pallini, NABOR® President, and President and Broker at Vanderbilt Realty. "Buyers have more choices now. This trend is promising."

Overall inventory rose 16 percent to 6,466 homes in February 2017 from 5,577 homes in February 2016. The largest increase in inventory during February was in the condominium market, which saw a 23 percent increase to 3,207 condominiums in February 2017 from 2,599 condominiums in February 2016. In fact, condominiums in the $1 million to $2 million price category increased the most of all housing types with a 43 percent jump in inventory to 284 condominiums in February 2017 from 198 condominiums in February 2016. Also reflected in the report, the North Naples area experienced the highest increase in condominium inventory, with a 40 percent increase to 989 condominiums in February 2017 from 704 condominiums in February 2016.

The February report also showed overall pending sales increased 10 percent to 1,092 pending sales in February 2017 from 993 pending sales in February 2016; and overall closed sales increased 18 percent to 613 closed sales in February 2017 from 518 closed sales in February 2016. But the condominium market also held the record in February for highest increases in both of these areas too. For example, pending sales of condominiums in the $300,000 to $500,000 price category had the highest increase of all other home types and price points in February with a 53 percent increase, and closed sales of condominiums in the $500,000 to $1 million price category had the highest increase of all other home types and price points in February with a 75 percent increase.

Overall median closed prices increased just 3 percent to $333,000 in February 2017 from $323,000 in February 2016. Interestingly, the median closed price for single-family homes decreased 5 percent to $402,000 in February 2017 from $425,000 in February 2016. Geographically, the Naples Beach area saw a 29 percent decrease in median closed price to $650,000 in February 2017 from $917,000 in February 2016, while the Ave Maria/Immokalee area saw a 29 percent increase in median closed price to $287,000 in February 2017 from $222,000 in February 2016.

The NABOR® February 2017 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® February 2017 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:

CATEGORIES

Feb 2016

Feb 2017

CHANGE

Total homes under contract (pending sales)

993

1,092

10%

Total closed sales

518

613

18%

Median closed price

$323,000

$333,000

3%

Total active listings (inventory)

5,577

6,466

16%

Average days on market

79

99

25%

Single-family closed sales

261

294

13%

Single-family median closed price

$425,000

$402,000

-5%

Single-family inventory

2,978

3,259

9%

Condominium closed sales

257

319

24%

Condominium median closed price

$260,000

$270,000

4%

Condominium inventory

2,599

3,204

23%

Broker analysts Coco Amar, Managing Broker at John R. Wood Properties, and Jeff Jones, Managing Broker at the Naples-Park Shore office of Coldwell Banker®, pointed out that economic factors may begin to delay baby boomers' decisions to sell their northern homes and buy in Florida.

"I'm finding buyers are taking their time making a purchase decision because it's still unclear how some of the President's reform policies will play out over the next few years. And with the stock market performing as well as it is right now, it's hard for them to replant those funds into a second home should they need it liquid quickly," said Amar.

"Many baby boomers are also facing very different life circumstances than retirees from previous generations, said Jones. "As the number of adult children and aging parents living with baby boomers increases, permanent relocation for them is not yet an option. Also, the recession seems to have reduced impulsive buying behaviors. Consumers are more educated about home values today and they are taking more time to look for the right home."

Buyer hesitation doesn't seem to be a factor with the real estate market in Naples just yet. In fact, cash sales increased to 68 percent of the closed sales made in February. And for good reason: according to Jones, "There were 400 price reductions in one week in the Southwest Florida MLS during February, which motivated buyers to make a purchase decision. Along with being named the happiest place to live in America, Naples continues to have a very healthy and balanced real estate market."

The new year rebounded with a strong gust of activity in the Collier County real estate market. Increases in overall pending sales (homes under contract), overall closed sales and overall inventory indicate a strong season ahead. Broker analysts who reviewed the January 2017 Market Report, which tracks home listings and sales within Collier County (excluding Marco Island) using the Southwest Florida MLS, are confident that market indicators are favorable to support momentum through season.

"We are definitely in a buyer's market now, and home sales were strong in January," said Phil Wood, President & CEO of John R. Wood Properties, who pointed out that the 6 percent increase in overall closed sales for January was driven by an impressive 14 percent increase in closed sales of condominiums. He remarked, "Properties that are selling rapidly are those that are priced at true market value."

In response, Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., agreed with Wood adding that, "the increase in inventory is a positive opportunity, especially for buyers looking in the under $300,000 condominium market, which increased by over 400 units in January."

According to the January Market Report, overall pending sales increased 9 percent to 924 pending sales in January 2017 from 847 pending sales in January 2016. Broker analysts said they are most encouraged by pending sales activity in the middle range of the market; namely, homes between $300,000 and $2 million, which all experienced double digit increases in January.

Overall closed sales increased 6 percent to 603 closed sales in January 2017 from 571 closed sales in January 2016. Interestingly, January was the first time both overall pending sales and overall closed sales were on the upswing simultaneously since March 2015.

The report also showed that overall inventory for all price segments increased by double digits in January too. Comparatively, condominium inventory in the $2 million and above category had the highest gain with a 44 percent increase to 135 condominiums in January 2017 from 94 condominiums in January 2016.

Geographic proximity to the beach remains a driving force in the Naples real estate market. As such, properties located in the Naples Beach area experienced a 15 percent increase in overall median closed price to $784,000 in January 2017 from $680,000 in January 2016. Pending sales for the Naples Beach condo market for January 2017 increased by almost 40 percent compared to last year and closings were up 16 percent. This was mostly driven by a somewhat limited condominium market in the Naples Beach area, where inventory increased 34 percent and pending sales shot up 39 percent in January.

The NABOR® January 2017 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® January 2017 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:

CATEGORIES

Jan 2016

Jan 2017

CHANGE

Total homes under contract (pending sales)

847

924

9%

Total closed sales

571

603

6%

Median closed price

$340,000

$314,000

-8%

Total active listings (inventory)

5,091

6,393

26%

Average days on market

75

91

21%

Single-family closed sales

291

284

-2%

Single-family median closed price

$425,000

$397,000

-7%

Single-family inventory

2,715

3,219

19%

Condominium closed sales

280

319

14%

Condominium median closed price

$278,000

$265,000

-5%

Condominium inventory

2,376

3,174

34%

Nationally, a balanced market (balanced equally between buyers and sellers) is considered to be six months of inventory. Yet, as observed by Adam Vellano, West Coast Sales Manager, BEX Realty - Florida, "Our report shows 8.91 months of inventory for January. The last time we had a supply of inventory like this was five years ago. I think it's time to remind sellers that 'price sells a home'."

Responding to these observations, Cindy Carroll, SRA, with the real estate appraisal and consultancy firm Carroll & Carroll, Inc., warned that sellers who are testing the market with high list prices may be disappointed in a few months as "these sellers see a reduction in list price as a reduction in value, when this is not the case at all. Working with a REALTOR® who closely monitors comparable listings will help them avoid months of waiting for a sale."

Local Real Estate Brokers Predict Strong Season

Consistent with historic activity in Southwest Florida, pending and closed sales in the greater Naples housing market continue to increase as the winter season approaches. The November 2016 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), showed a median closed price of $303,000 during November 2016; a 5 percent decrease from the November 2015 median closed price of $318,000. More sellers also entered the market in November, which resulted in a 40 percent increase in inventory to 5,733 properties in November 2016 from 4,095 properties in November 2015 (300 more properties than October 2016). Yet according to several broker analysts who examined the November 2016 Market Report, one obstacle agents continue to face is a market with pockets of improper valuations.

"One year ago we had 4.24 months of inventory market wide, said Cindy Carroll, SRA with the real estate appraisal and consultancy firm Carroll & Carroll, Inc. "The November 2016 statistics show an 8.02 month supply, that's a 60 percent increase in months of inventory year over year."

Carroll believes that the local real estate market reached the top of the current economic cycle in the fall of 2015 and explained that, "rising inventories require properties to be appropriately and competitively priced in order to achieve a sale. Overpriced properties tend to languish on the market, contributing to an oversupply condition. To avoid this, sellers should seek guidance from a REALTOR® who can help price the home appropriately from the beginning so it gets sold quickly and at the best price."

Wes Kunkle, President and Managing Broker at Kunkle International Realty, said many of his investor clients are adding to the area's lower end inventory. "When investors who bought between 2009 and 2012 start to reenter the market, this is a sign that price appreciation is good and it's a great time to sell."

Interestingly and according to the report, over 50 percent of homes sold in the last year were in the $300,000 and below price category. This segment continues to see an increase in sales month over month. In November 2016 there was an 8 percent increase in overall closed sales to 285 closed sales from 264 closed sales in November 2015.

From a seller's perspective, Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., said it is important for homeowners on the fence to determine whether they want to be proactive or reactive sellers. "Proactive sellers work with REALTORS® who focus on market valuations that are real."

Jeff Jones, Managing Broker at the Naples-Park Shore office of Coldwell Banker®, said he also watches days on market closely. "The number of properties selling under 30 days is increasing, while those in the 30 to 90 day and 90 day and up segments are stagnant. This tells me that there are still properties improperly priced out there."

The NABOR® November 2016 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® November 2016 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:

CATEGORIES

Nov 2016

Nov 2015

CHANGE

Total homes under contract (pending sales)

713

804

-11%

Total closed sales

572

558

3%

Median closed price

$303,000

$318,000

-5%

Total active listings (inventory)

5,733

4,095

40%

Average days on market

88

77

14%

Single-family closed sales

268

261

3%

Single-family median closed price

$397,000

$426,000

-7%

Single-family inventory

2,971

2,319

28%

Condominium closed sales

304

297

2%

Condominium median closed price

$251,000

$258,000

-3%

Condominium inventory

2,762

1,776

56%

Phil Wood, President & CEO of John R. Wood Properties, remarked that the Market Report showed an increase in inventory of just over 1,600 units above last year, of which 900 were below $500,000. "Only 200 of these new properties were in the Central Naples area; most of the inventory growth appears to be happening in areas outside the city limits."

"Now that we are past the election and the economy responded positively, we are looking forward to a strong and busy season," said Dominic Pallini, NABOR® President and Broker at Vanderbilt Realty.

Broker analysts agreed that factors that negatively impacted tourism and seasonal migration in 2016 like the February stock market slump, a low Canadian exchange rate, Brexit and Zika fears, and the presidential election are behind us now. The only obstacle left to overcome is irrational legacy pricing behaviors. With inventory expected to increase, buyers will have more options and sellers should seek guidance from a REALTOR® who knows the local market and can help price properties correctly.

If you are considering selling your home, ask a REALTOR® to help you do a market comparison and determine a fair and reasonable listing price. A REALTOR® can also identify properties best suited for buyers and negotiate a purchase price that fits any budget. Discover more at www.naplesarea.com.

More Buyers Choosing Conventional Mortgage Loans to Purchase Their Home

Naples, Fla. (November 18, 2016) - Over 44 percent of homes purchased in October used conventional financing methods (e.g., mortgages), according to a report released by the Naples Area Board of REALTORS® (NABOR®) that detailed activity in the greater Naples housing market during October 2016. The October 2016 Market Report, which tracks home listings and sales within Collier County (excluding Marco Island), showed a gradual - but continuous - decline in cash sales with growth in conventional sales during the last 12 months.

In October 2015, cash sales accounted for nearly 65 percent of all homes sales in Naples, whereas in October 2016, cash sales accounted for only 56 percent of all homes sales in Naples. Interestingly, homes purchased in the $300,000 to $500,000 price category in October reflected the highest percentage of conventional sales (60 percent) of all the price categories reported.

"Increased use of conventional mortgages in October may be an indication of increased consumer confidence coupled with a better lending environment," said Rick Fioretti, NABOR® President and Broker Associate with Berkshire Hathaway Home Services Florida Realty. "In October 2014, only 32 percent of all home sales used conventional financing. In October 2015, conventional financing increased to 35 percent of overall sales."

Coco Waldenmayer, a managing broker at John R. Wood Properties, added that impending interest rate increases might create more urgency for people looking to finance a future home purchase.

The October 2016 Market Report showed overall pending sales decreased 13 percent to 702 pending sales in October 2016 from 807 pending sales in October 2015. Interestingly, overall pending sales in the $500,000 to $1 million price category actually increased 14 percent to 125 pending sales in October 2016 from 110 pending sales in October 2015. Likewise, pending sales of condominiums in the $500,000 to $1 million price category increased 30 percent to 57 condominiums in October 2016 from 44 condominiums in October 2015. The increase in pending sales extended to the single-family home market as well, in which both the $300,000 to $500,000 price category and $500,000 to $1 million price category increased 3 percent.

In the closed sales category, the October 2016 Market Report showed overall closed sales decreased 7 percent to 556 closed sales in October 2016 from 601 closed sales in October 2015. However, closed sales of condominiums in the $1 million to $2 million price category increased 80 percent to 9 condominiums in October 2016 from 5 condominiums in October 2015. And closed sales of single-family homes in the $300,000 to $500,000 price category increased 21 percent from 120 single-family homes in October 2016 from 99 single-family homes in October 2015.

For October, the overall median closed price increased 6 percent to $320,000 in the 12-months ending October 2016 from $302,000 in the 12-months ending October 2015. Conversely, the overall median closed price for homes above $300,000 did not reflect a recordable change. Homes in the $300,000 and below price segment, which experienced a 10 percent increase to $215,000 in the 12-months ending October 2016 from $195,000 in the 12-month ending October 2015, is once again responsible for driving the overall median closed price increase.

According to Jeff Jones, Managing Broker at the Naples-Park Shore office of Coldwell Banker®, the increase in days on market for October (15 percent) reflects a need to continue dialog about properly pricing homes in Naples. "Even though we are selling homes in a very desirable location, when days on market increase, one factor affecting this is overpriced properties. And because historically, inventory increases right before season, REALTORS® need to take a bold stance now and guide home sellers to a more realistic asking price based on today's market."

The NABOR® October 2016 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® October 2016 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:

CATEGORIES

October 2016

October 2015

CHANGE

Total homes under contract (pending sales)

702

807

-13%

Total closed sales

556

601

-7%

Median closed price

$315,000

$290,000

9%

Total active listings (inventory)

5,426

3,903

39%

Average days on market

85

74

15%

Single-family closed sales

295

310

-5%

Single-family median closed price

$375,000

$385,000

-3%

Single-family inventory

2,849

2,210

29%

Condominium closed sales

261

291

-10%

Condominium median closed price

$240,000

$230,000

4%

Condominium inventory

2,577

1,693

52%

"There is less than a three-months supply of single family homes under $300,000," remarked Bill Coffey, Broker Manager of Amerivest Realty Naples, who added that if home buyers are looking to stay within this price range they may be better served in the condominium market, which saw a 53 percent increase in inventory to 1,116 condominiums under $300,000 in October 2016 from 731 condominiums under $300,000 in October 2015.

According to Kathy Zorn, broker/owner, Florida Home Realty, "The report showed six months worth of inventory to sell. We have not seen this high a level of inventory in the month of October since 2013. So as we move into season with this healthy level of inventory, buyers will have more options, which is all the more reason sellers should seek guidance now from a REALTOR® who knows the local market and can help them price their properties right."

Geographically, inventory in the Naples Beach (34102, 34103, 34108) and North Naples (34109, 34110, 34119) areas increased the most in October. In the Naples Beach area, single-family home inventory rose 25 percent to 567 single-family homes in October 2016 from 454 single-family homes in October 2015, and condominiums increased 71 percent to 655 condominiums in October 2016 from 384 condominiums in October 2015. For North Naples, single-family home inventory rose 35 percent to 878 single-family homes in October 2016 from 650 single-family homes in October 2015, and condominiums increased 64 percent to 734 condominiums in October 2016 from 447 condominiums in October 2015.

"There are plenty of homes to buy and sell in Naples," said Fioretti, who ends his term as NABOR® President in December. "It's going to take some time to see how the market will react to the election and the changes in the government, but I believe the challenge we REALTORS® face in the short-term is educating the public on market pricing. The value of a home relates to local sale prices and a realistic price means a rapid sale."